Guidance

Financial Reporting Council

April 2022

FRC Tribunal Panel Members

Fees and Expenses Policy
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Tribunal Panel Members Fees and Expenses Policy
Introduction

1 This policy is issued by the Financial Reporting Council’s Board and its Conduct
Committee (“the FRC”) under the Accountancy Scheme and the Actuarial Scheme
(referred to collectively as “the Schemes”), the Audit Enforcement Procedure (“AEP”)
and the Auditor Regulatory Sanctions Procedure and the Crown Dependencies
Recognised Auditor Regulatory Sanctions Procedure (“the Sanctions Procedures”).
Paragraph 167 of the AEP, Paragraph 3 of the Schemes and paragraph 3.1 of the
Sanctions Procedures empower the Conduct Committee to provide the Convener and
Tribunals with guidance concerning the exercise of their duties under the Schemes
and the Sanctions Procedures, who shall have regard to such guidance, and to
authorize the remuneration of the members of any Tribunal, the Convener and any
other persons.

2 It is important that the FRC operates and is seen to be operating, a cost-effective

Tribunal system. This is achieved by having clear policies in place with guidance as to
the nature of those fees and expenses that can be claimed legitimately. Any future
changes to the rates set out in this policy will be notified to Tribunal Panel Members in
writing and the policy updated accordingly.

3 This document sets out the fees and expenses policy for all Tribunal Panel Members
(collectively “Members”) appointed in respect of any matter under either of the
Schemes or the Sanctions Procedures, or the Audit Enforcement Procedure (referred
to collectively as the “Enforcement Procedures”). It details the fees and expenses that
may be claimed and the reimbursement procedures.

4 All fees and expenses incurred will be reimbursed provided they are reasonable and
are incurred and claimed in compliance with this policy. Claims that are insufficiently
detailed or appear unreasonable will be the subject of clarification or query.

Fees

Fee rates for hearings and training days

5 The daily fee rate for hearing days and training days is £600 for Accountant, Auditor,
Actuary and Lay Members and £1,100 for Legal Chairs and these fees are liable to
taxation. Where the Tribunal sits for up to a half-day session, 50% of the daily fee rate
can be claimed.

6 These rates cover the hearing itself, any reasonably necessary, case-related meetings
and pre-hearing/post hearing preparation on hearing days.

Fee rates for preparation work on non-hearing days

7 The fee rate per hour for preparation work on non-hearing days is £92 for Accountant,
Auditor, Actuary and Lay Members and £169 for Legal Chairs. Such work includes reading
case papers, receiving and sending correspondence, meetings and drafting. These rates
also apply to other types of preparation work such as consideration of Proposed
Settlement Agreements under the Schemes and associated correspondence.

8 Only that preparation work which is reasonable can be claimed. Claims for preparation
work should include an itemized list and must be submitted with a brief description of the
work carried out and the time spent. Where it appears that the claim is unclear, or

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 unreasonable, this may result in a request for more information and/or an explanation
of why the work was justified. Examples of claims that may appear, and be
subsequently deemed, unreasonable include those where:

i. the claim by one Member for similar preparation work is notably higher than that
of other Members;

ii. the preparation work subject of the claim is carried out at times which appear out
of sync with key points in a case management timetable (for example, where no
direction requiring the provision of material has recently passed and/or there is
no hearing date in sight).

9 If Accountant, Auditor, Actuary or Lay Members appointed to any Tribunal under the
Enforcement Procedures are unsure about what is required of them or what
preparation work they should be undertaking, they should seek advice from the Legal
Chair.

Cancellation fees

10 The Conduct Committee may, in its absolute discretion, approve the payment of any
applicable fees or expenses claimed by a Member in respect of hearing days that
have been adjourned, cancelled or postponed. The Conduct Committee will only
grant such approvals where the decision to adjourn, cancel or postpone has been
made by the Tribunal as a result of a request to do so from any party that was made
fourteen days or fewer before the relevant hearing day.

11 The level of any such payment approved by the Conduct Committee in respect of an
individual’s fees may not exceed an amount greater than 50% of the combined
relevant daily fees that would have been payable to that individual for a period of five
business days had the decision to adjourn, cancel or postpone not been taken.

Expenses

12 All travel, accommodation and subsistence expenses may be claimed in accordance with
the FRC Travel & Expenses Policy as amended from time to time.

How and when to claim fees and expenses

13 All fees and expenses must be itemized using the FRC Tribunal Panel Fees &
Expenses Claim Form (“Claim Form”), available on the FRC website. If VAT is
claimed, then a VAT invoice will be required. Invoices must be provided by Members
in their personal capacity, not via a company.

14 Completed Claim Forms must be returned to the GLT Legal Administrator, copying in
the Accounts team – accounts@frc.org.uk, within the first week of the month after the
fees and/or expenses are incurred. Expenses, other than overnight subsistence, must
be supported by receipts or payment slips. Consideration will be given to reimbursing
minor expenses without a receipt but an explanation for the lack of receipt is required
and should be included on the Claim Form.

Issued by the Conduct Committee of the Financial Reporting Council

22 February 2022 with effective from 1 April 2022
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